Neill Company purchases 80 percent of the common stock of Stamford Company on January 1,...

Neill Company purchases 80 percent of the common stock of Stamford Company on January 1, 2013, when Stamford has the following stockholders’ equity accounts:

To acquire this interest in Stamford, Neill pays a total of $592,000. The acquisition-date fair value of the 20 percent noncontrolling interest was $148,000. Any excess fair value was allocated to goodwill, which has not experienced any impairment.

On January 1, 2014, Stamford issues 10,000 additional shares of common stock for $15 per share. Neill does not acquire any of this newly issued stock. How does this transaction affect the parent company’s Additional Paid-In Capital account?

a. Has no effect on it.

b. Increases it by $44,000.

c. Decreases it by $35,200.

d. Decreases it by $55,000.